HSBC’s revenue for the third quarter falls 35% as unhealthy mortgage provisions enhance
© Reuters. A HSBC bank is shown in New York
HONG KONG / LONDON (Reuters) – HSBC Holdings PLC (L 🙂 posted a 35% decline in quarterly earnings, better than expected, as spending cutbacks cushioned higher loan loss provisions due to the economic impact of the coronavirus pandemic.
Reported pre-tax income for Europe’s largest bank based on assets was $ 3.1 billion for the quarter ended September 30, compared to $ 4.8 billion for the same period last year.
The profit was above the average of the bank’s analyst estimate of $ 2.07 billion.
While economic conditions improved in some markets in the third quarter as lockdowns were lifted and leniency measures helped businesses and consumers, global banks’ provisions remained high as they assess the impact of the pandemic.
HSBC, which is focused on Asia, expected losses on non-performing loans at the lower end of the $ 8-13 billion range it set earlier this year.
Faced with fewer options to support sales growth, HSBC has tried to cut costs around the world and in June resumed plans to cut around 35,000 jobs that had been put on hold after the coronavirus outbreak.
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